Iridium $IRDM jumps 25%; Rocket Lab $RKLB agrees $8B acquisition

Iridium $IRDM jumped about 25% after Rocket Lab $RKLB agreed to acquire the satellite-communications company in a cash-and-stock transaction with an enterprise value of approximately $8.0B. The company release set the consideration at $54 per Iridium share, split into $27 in cash and $27 in Rocket Lab stock.

The premium is part of the market impact. Rocket Lab said the $54 per-share value represented a 24% premium to Iridium’s prior closing price. The transaction is well above the $500M M&A threshold and would combine Rocket Lab’s launch and satellite manufacturing operations with Iridium’s operating communications network.

The industrial logic is spectrum and installed infrastructure. Iridium operates a global L-band satellite network with 66 active satellites and 14 in-orbit spares, and the release cited more than 2.5M subscribers. For Rocket Lab, the deal would shift more of the business toward recurring space-services revenue rather than launch cadence alone.

Financing and timing remain material. The release described a cash-and-stock structure, and market reports cited a $3.6B bridge loan supporting the transaction. The deal is expected to close in mid-2027, subject to Iridium shareholder approval, regulatory approvals, and customary conditions.

The next checkpoints are the definitive proxy, financing terms, regulatory review, and Rocket Lab’s pro forma leverage. Investors will also watch whether Iridium’s direct-to-device, IoT, positioning, navigation, and timing roadmap can be funded without diluting the cash-flow profile that made the network attractive.